Que: What is the role of energy efficiency in India’s clean energy transition?

Ans: It is now universally accepted that a country’s economic growth can be decoupled from its energy use and related greenhouse gas emissions. Economy-wide energy efficiency is a crucial element of competitive economies. For instance, in 1990, affluent ‘first world’ countries used 70% of the world’s energy, but three decades later, they account for only 30% of global energy use. Some of the world's most successful economies, such as Japan, the EU, and the US, are also the world's most energy-efficient. Less affluent countries are a generation behind more economically developed ones and are yet to transition to more advanced and energy-efficient systems, processes, and technologies, with the notable exception of China.

To transform India into an energy-efficient economy, energy policy planning must integrate generation, transmission, distribution, and end use simultaneously. This Integrated Resource Planning (IRP) approach assesses whether conserving electricity is more economical than producing and distributing it. By evaluating power planning holistically from both supply-side and demand-side perspectives, greater investments can be channelled into energy efficiency and demand-side management. The urgency for IRP is especially pronounced in rapidly growing economies like India, where the reliance on fossil fuels for energy cannot be quickly diminished. Additionally, energy efficiency is essential for improving energy access in emerging economies with rising energy demand. Despite significant advancements, one-third of Indian households still lack uninterrupted electricity. Enhancing energy efficiency on both the supply and demand sides is crucial for expanding the capacity of existing generation, transmission, and distribution networks.

Moreover, the role of energy efficiency in India's clean energy transition extends beyond economic considerations to significant environmental benefits. Increasing evidence shows that the future of decarbonisation and achieving net-zero emissions cannot be envisioned without leveraging large-scale energy efficiency measures across all sectors.

Que: How can India advance the global goal of doubling energy efficiency progress?

Ans: Successive G20 presidencies have underscored the pivotal role of energy efficiency in protecting our environment. The journey towards a more energy-efficient world reached a significant milestone during India's Presidency in 2023 when the G20 agreed to double the global rate of improvement in energy efficiency within this decade, considering national circumstances. The Director General of the Bureau of Energy Efficiency (BEE) has elucidated the importance of continuing last year’s momentum on energy efficiency and enunciating the Global South’s voice: “As Global South countries like Indonesia, India, Brazil, and South Africa take on G20 leadership, they have the chance to shape the discourse to reflect their needs and maximise collective impact. Future presidencies must build on this momentum for a harmonised approach to meet the Paris Agreement's ambitious targets and move towards a net-zero world by spearheading initiatives, forming consortiums, and aligning regional policies.” Parallelly, India’s G20 Sherpa has requested the Ministry of Power, which was the nodal ministry for the G20 Energy Transition Working Group, to carry forward India’s agenda and initiatives, which will help India grow its influence with other economies, serving its climate goals in part through energy efficiency.

As the first step towards advancing the New Delhi Leaders’ Declaration's outcome on energy efficiency, India should collaborate with current and future G20 presidencies to create and adopt a Monitoring & Evaluation (M&E) framework for the "doubling" energy efficiency target. Currently, energy intensity, defined in terms of primary energy supply and GDP, is used as the indicator to track energy efficiency progress. For example, India's energy intensity decreased by over 2% annually over the last decade, from 5.3 MU/$ to 4.3 MU/$; doubling energy efficiency progress would require reducing our energy intensity by 4% annually this decade. Energy intensity is a simple but imperfect metric for quantifying national energy efficiency. While G20 countries aim to double global energy efficiency within this decade, national circumstances necessitate sector-specific metrics. For instance, decreased energy intensity during a war or pandemic reflects reduced operations, not improved efficiency. It's crucial to distinguish between reduced energy use due to such exceptions and true efficiency gains, which mean using less energy for the same output. Additionally, national differences in economic structures and supply chains affect energy intensity.

India should leverage its State Energy Efficiency Index (SEEI) framework to create a robust energy efficiency data reporting ecosystem in the Global South to define internal baselines, set sectoral targets, track progress, exchange learnings, and encourage healthy competition through awards and recognition at sub-national levels. India has already demonstrated South-South cooperation in the development of national cooling action plans – the India Cooling Action Plan development methodology is being utilised by several Global South countries to create their own cooling action plans, a testimony of India’s pioneering action becoming a replicable model for others. More recently, an MoU was signed between India and Bhutan to increase cooperation on energy efficiency. In the same spirit, India should partner with Global South countries within and beyond the G20 to secure the benefits of energy efficiency data and metrics.

Que: How is AEEE contributing to the ‘doubling’ goal?

Ans: AEEE supported the development of BEE’s ‘Strategic Plan for Advancing Energy Efficiency Across Demand Sectors by 2030’ in collaboration with Sustainable Energy for All (SEforAll) and International Energy Agency (IEA), which served as a crucial input for discussions on energy efficiency within the G20 Energy Transitions Working Group in 2023. The Strategic Plan highlights five high-impact energy efficiency opportunities that link strongly with the ‘Voluntary Action Plan on Doubling the Global Rate of Energy Efficiency Improvement by 2030’. AEEE’s new report, ‘Doubling Global Energy Efficiency Progress: How the G20 Can Lead the Way’, was endorsed and launched by the Director General, BEE, at the Forum for Energy Efficiency & Decarbonisation (FEED) on 28 Feb 2024. This report is a deep dive into three of the five high-impact energy efficiency opportunities outlined in the Strategic Plan and draws upon extensive secondary literature, expert consultations, and rigorous peer reviews by global energy efficiency luminaries. It aims to embody the collective expertise and unwavering dedication of the Indian and international energy efficiency community. Its goal is to contribute to realising the global target of doubling energy efficiency improvements by 2030, reflecting the spirit of collaborative determination.

Additionally, AEEE has collaborated with BEE and other partners to continuously build momentum towards the “doubling” target at suitable national and international forums such as the India Energy Week, COP28, and the Asia Clean Energy Forum.

AEEE is keen on responding to the call to action made by BEE and the G20 Sherpa and on advancing the New Delhi Leaders’ Declaration outcome on doubling the global rate of energy efficiency improvement by 2030. Among other activities, AEEE proposes collaborating with the Brazil G20 Presidency to publish an online database of best policy practices by sector from the G20 in the spirit of cross-country knowledge sharing and to support the Global South within and beyond the G20. Additionally, AEEE is uniquely positioned to utilise the State Energy Efficiency Index (SEEI) framework, which it co-developed with BEE, to establish a robust energy efficiency data reporting ecosystem in the Global South.